Interest Rate Rise (3 Viewers)

[sophietheeskimo]

Argh ill tell you the worst thing about interest rate rises. Darn 'Greater' adds with incompetant actors will intesify. Get a real job and buy a home you scurvy swine *shakes fist. lol

But on a serious note it is half and half. Good for the savers and crap for the borrowers. simple as that

 

[sophietheeskimo]

yeah, yeah. im aware of the whole "dont let emotion get in the way of profit" train of thought. But there has to be a line drawn when people can borrow 110 % of a loan and use two other credit cards to pay off another. surely banks realise that their fueling inflation.

They probably do realise and are doing it intentionally. Banks are bastards. Just like how fiscal policy is politically driven rather than trying to help the country they want our stupid population to vote for them. But with all this mudslinging happening in the political world atm rising interest rates are the least of Johnny's problems.

 

[kiwi]

LolZ !!!! i knew a family that was on one of those greater adds. They ran up a massive credit card debt on their holiday and defaulted within a year.
No amount of money can buy back ur dignity after staring in one of them adds.

 

[sophietheeskimo]

LolZ !!!! i knew a family that was on one of those greater adds. They ran up a massive credit card debt on their holiday and defaulted within a year.
No amount of money can buy back ur dignity after staring in one of them adds.

Hahaha. Nothing is ever for free and never have i heard so much irony!! not even in 'vommit novel' Emma. Poetic justice is so sweet

 

[kiwi]

Seeing as credit cards typically have a limit of $5000 and an interest rate of 10% - 20%, i don't think what you said happens, or if it does, not very often because only a moron would do that. It's better to not pay it at all and let it accumulate interest then transfer the debt to an account with a higher interest rate..

Never underestimate the stupidity of the human beings. They're out there believe me.

 

[sophietheeskimo]

What about that Radio Rental ad where the single mother is talking about how she bought a computer for her kids because they gave her "a fair go".

I still don't know whether to take that ad seriously or not.

hahah yeah and akmal totally took the mickey out of it on thank god your here. Are the chasers back yet? they need to stop these repeats because man they have some good material right now. the world has gone mad

 

[kiwi]

hahah yeah and akmal totally took the mickey out of it on thank god your here. Are the chasers back yet? they need to stop these repeats because man they have some good material right now. the world has gone mad

Im pretty sure the chaser a doing a coverage of the ellection which should be good !!

 

[withoutaface]

jb_nc: Credit is a scarce good. When lots of people want to borrow, and less people want to lend (as is the case right now), the price of the good will go up. There is obviously prosperity, but not half as much as most people would like to think, and the message that this is sending is that if I want a third car or a second plasma screen, I'm going to have to pay through the nose for it, thus discouraging me from taking the credit when people have more urgent wants (e.g. enough bedrooms in their house).

 

[jb_nc]

jb_nc: Credit is a scarce good. When lots of people want to borrow, and less people want to lend (as is the case right now), the price of the good will go up. There is obviously prosperity, but not half as much as most people would like to think, and the message that this is sending is that if I want a third car or a second plasma screen, I'm going to have to pay through the nose for it, thus discouraging me from taking the credit when people have more urgent wants (e.g. enough bedrooms in their house).

"Overspending" wasn't a good word then; "over-borrowing" works better imo because you made it sound like people were spending money they earnt but yes, I'll agree with you now.

 

[Snaykew]

Keep spending Australia! Then whine about inflation and interest rates. It's like a murderer complaining about people dying.

 

[wuddie]

explain how has the government spend too much...we should also blame ourselves mate!

that's what i meant, read it again.

when i was in high school doing hsc economics, i was fortunate enough to be in a seminar with ross gittins, and he explained this concept of 'virtual wealth'. it is sort of like what withoutaface said. when a person realises that his property value has gone up, he thinks that he is getting richer, but what he doesn't realise is that he is still the same comparatively to the market. so with that limited knowledge, the person goes and spends more money than he thinks he has got. in fact, most of the people are doing the same thing, hence the huge amount of spending and upward pressure on inflation.

so really, the govt is copping all the crap for something they didn't do. although peter costello's tax cuts for the last few years hasn't helped the interest rate. on top of the fact that howard promised to keep interest rate down, when he knows better than anyone that he hasn't got any control over it.

it is funny how misinformed so many people are, they believe anything they read in the paper.

 

[PrinceHarry]

Strange I didnt even start this thread and now it is credited as started by me.

 

[iamsickofyear12]

once again i see ignorance amongst the people of australia.....LIKE I SAY TO MOST PEOPLE IT IS NOT THE HOWARD GOVERNMENT WHO DECIDES THE INTEREST ITS THE RESERVE BANK OF AUSTRALIA FOR CRYING OUT LouD

I know how Interest Rates work... but a lot of people actually believe what I said and that is all that is going to matter when it comes to the next election.

 

[xoa]

I support higher interest rates.

Highly indebted people will lose out, but it will make houses affordable.

I remember just 10 years ago, there were often plenty of decent houses in my suburb of Brisbane for $100k. I know that we'll never see that again, but $200k would be nice. At least it would be possible for me to save that sum. I don't want to take out a massive mortgage to buy a dogbox, no matter how low interest rates are.

 

[Conspirocy]

I'm not that worried about the interest rate rises at the moment. I think rising rates means we have a lot of room to move still.

I would be more worried if they knew there was a bad outlook and didn't rise rates because it was too late. I think this cycle of rate rises is needed so that when we do get hit hard economically, the RBA has some slack to lower interest rates. If you look at rates before, there was no room to move but up really. If a recession had come then, it would have been much longer because monetary policy wouldn't have been effective. You want to lower rates in bad times, or just before them to ease the pressure - that seems to be the policy the RBA will have

For example, if with all the negative news going around, the RBA decided to lower rates - that would be a definite sign that we are screwed.

Then again, If the RBA get's it wrong this rate rise could be terrible because by the time it starts having an effect we could be in a recession.

Personally I would have done nothing...but I'm a scardy cat. But if a recession isn't near expect more rate rises I think.

 

[Conspirocy]

MATE....DO U WORK?...>MATE....GST HAS ALLOWED INCOME TAX RATES TO DECREASE MATE......cause now there isnt much pressure on income tax as the source of revenue for the state governments....WITHOUT GST WE WOULDN"T HAVE OUR TAX DEDUCTED!!!!!

MATE what about the one off 10% rise in prices when the GST came in that crippled all my savings MATE MATE MATE

 

[chicky_pie]

Rates pushed to 13-year high


THE central bank has today boosted official interest rates by 25 basis points to 7.25 per cent, the highest level in over 13 years, to combat a sharp rise in inflation.

"Inflation is likely to remain relatively high in the short term," the Reserve Bank of Australia said today.

"The (RBA) board concluded that a further tightening in monetary policy was needed," the RBA said, adding that it would continue to monitor inflation in setting interest rates.

Official rates are now at their highest level since December 1994 – and analysts are predicting interest rates could reach 8 per cent this year given persistently high inflation.

"We expect that there will probably be a follow up to today's rate rise with another one in April," said James Shugg, a senior economist with Westpac. "And there is the risk of another rate rise another that," Mr Shugg said.

The RBA sets rates to keep inflation between 2 to 3 per cent, but underlying inflation is now approaching 4 per cent despite the RBA’s repeated attempts to place a lid on rising consumer prices.

The central bank has raised interest rates seven times in two years.

"There's a possibility that the cash rate will be raised to 8 per cent," said said Macquarie Group senior economist Brian Redican. "Inflation is the most persistent it has been in 15 years."


http://www.news.com.au/business/story/0,23636,23317588-462,00.html

THANK YOU LABOR

 

[veloc1ty]

I like some of the comments on that story...

"Im so sick of the Government telling me I cant spend my own money that I work hard for. They say we have to "curtail spending". Whats the point of even living if Im told not to spend my "OWN" money"

"What is the point of adding... "TO A NEW ** YEAR HIGH"!!! OBVIOUSLY.. every new rate increase is going to be higher than the previous...making the new one the new high... obviously."

 

[Nebuchanezzar]

Aussie John says that we'll be able to spend our hard owned moolah by the end of the year.

Question: Aren't these rate rises on the verge of doing more harm than good? Like, you know, hundreds of people defaulting on their morgages is a far great price than moderate inflation amirite?

Question 2: Wouldn't raising the GST or putting some kind of special anti-inflationary tax on large spending (like buying shares or whatever) be a better instrument than interest rates? You know, target those who spend lots and can afford to be penalised rather than those who are struggling to maintain a house.

 

[Omium]

THANK YOU LABOR

I refer you to an earlier post.

Never underestimate the stupidity of the human beings. They're out there believe me.